Three public schemes — Bëllegen Akt, interest subsidy, and Klimaprêt — affect three different cost items, and two of them are not negotiable with your bank.
By the ChatHome Research Desk · Updated on
Most loan simulators answer only one question: what rate? In Luxembourg, that is the wrong question to ask first. Three state schemes shift the total cost of a purchase more reliably than a negotiated decimal — and they are written into verifiable laws, which a daily rate is not.
In brief
chathome.lu explains: In Luxembourg, three public subsidies determine the real cost of a home loan. The Bëllegen Akt is a tax credit of €40,000 per buyer (law of 3 July 2025) that absorbs the 7% registration and transcription duties — i.e., all duties up to about €571,000 for a single buyer. The interest subsidy, subject to income conditions, reduces the actual rate borne from 0.25% to 3.50% on a loan tranche of up to €200,000, increased by €20,000 per dependent child (cap €280,000). The Klimaprêt covers 1.5% interest on €100,000 for energy renovation, provided the home is over 10 years old and has obtained a Klimabonus.
When searching for "mortgage loan simulation", you look for a rate. But in Luxembourg, three public schemes act on three different cost items, and two of them do not depend on your bank at all: the Bëllegen Akt reduces the amount to pay out on signing day, the interest subsidy reduces the rate you actually bear, and the Klimaprêt reduces the cost of renovation following the purchase.
The distinction matters because they are obtained from different places: the first goes through the notary, the other two through the state — not the banker.
The acquisition for valuable consideration of a residential property is subject to 7% duties: 6% registration duties and 1% transcription duties.
The tax credit called "Bëllegen Akt" is set at €40,000 for each buyer under the law of 3 July 2025. Two buyers signing together therefore cumulate €80,000.
Concretely: a €40,000 credit fully absorbs the duties due on a price of approximately €571,000; with two, full coverage rises to about €1,143,000 (calculation: credit ÷ 7%). Below these thresholds, a purchase of a main residence pays no registration duties — remaining are notary fees and costs, which are not covered.
The counterpart is an occupancy condition: the home must be personally occupied as a main residence — two years, or four years for a building plot or a property under construction.
A useful warning: this amount has changed several times — €30,000 under the law of 16 May 2023, a temporary increase in 2024, then the law of 3 July 2025. As of our verification, the English-language Guichet page still described the window expired on 30 June 2025. Rely on the amount in effect on the date of your deed, not an article.
And the amount is currently moving. On 16 July 2026, the government presented the "Booster fir de Wunnengsbau", which raises the credit from €40,000 to €45,000 per person — enough to acquire, according to the press release, a property of about €640,000 without registration duties. This increase has not yet been voted: it will apply upon entry into force of the law. Buyers whose deed is signed between the announcement and this entry into force may claim the benefit from the Registration Administration. If you sign in this interval, this is a step not to forget — it does not happen automatically.
This is what is searched under the name "social loan". Its official name is the interest subsidy: the state covers part of the interest on the mortgage loan for the main residence.
Two parameters determine the amount:
Order of magnitude: one subsidy point on €200,000 is worth about €2,000 in the first year; at the maximum rate, about €7,000. These amounts then decrease, as they follow the outstanding capital.
The scheme is subject to income conditions: it does not apply to everyone. But when it does, its effect on the actually borne rate far exceeds what ordinary bank negotiation produces — and it is applied for from the state, not the bank.
Montants vérifiés aux sources officielles luxembourgeoises, consultés le 2026-07-27
Source: Administration de l'enregistrement ; Guichet.lu ; Ministère du Logement
A purchase is often accompanied by energy renovation. The interest subsidy for climate loans (Klimaprêt) covers 1.5% interest — not exceeding the effective loan rate — on an amount taken into consideration up to €100,000, i.e., about €1,500 in the first year.
Two conditions filter access: the home must have been used for housing for at least 10 years, and the works must have obtained a Klimabonus aid. The Klimaprêt therefore does not replace the Klimabonus: it supplements it.
We could display an average rate. We do not, and the reason is simple: the only rate series we hold come from ECB statistics whose most recent observation dates back to February 2026 — too old to be presented as "the current rate". Publishing an outdated figure under a guise of timeliness would be worse than publishing nothing.
Rates move; the three schemes above are written into texts that can be cited. That is why this article focuses on the latter. For the monthly payment, use the loan simulator and the borrowing capacity with the rate your bank actually offers you, and the Klimabonus calculator for the renovation part. Our methodology explains where our market figures come from.
The regulatory amounts come exclusively from the primary sources cited (Registration Administration, Guichet.lu, Ministry of Housing), consulted on 2026-07-27, and not from bank summaries or aggregators. Three figures are derived by direct calculation and indicated as such: the full duty coverage threshold (tax credit ÷ 7% — €40,000 ÷ 0.07 ≈ €571,429, rounded to €571,000; €80,000 ÷ 0.07 ≈ €1,142,857, rounded to €1,143,000); the annual value of one interest subsidy point (1% × €200,000 = €2,000; 3.50% × €200,000 = €7,000); and that of the Klimaprêt (1.5% × €100,000 = €1,500). These last three are FIRST YEAR values calculated on the initial capital: as the subsidy follows the outstanding capital, the amount decreases over the loan term. No current bank rate is published.
This article contains no current mortgage rate. The only rate series we have (mortgage_rate_data, ECB MIR statistics) have the most recent observation February 2026 and include known ingestion duplicates; they are therefore unsuitable for publication as a current rate. Aid amounts are those in effect on the consultation date (2026-07-27): the Bëllegen Akt has been amended by the laws of 2023, 2024 and 2025 and may be amended again — the applicable amount is that of the notarial deed date. The income thresholds for entitlement to the interest subsidy are set by regulation and depend on household composition; they are not reproduced here and must be verified via the Single window for housing aid. The maximum duration of the Klimaprêt and any subsidy cap expressed as a percentage of capital do not appear on the official page and are therefore not stated. The duty coverage thresholds assume a 7% rate and do not account for notarial fees and costs, which remain due. Finally, the increase of the tax credit to €45,000 announced on 16 July 2026 was not voted at the publication date: it is presented here as an announced measure, not as the law in force.
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